Fatal Error C000003A Applying Update–While installing Service Pack 1 for Windows Server 2008 R2 and Windows 7

Recently I was installing Windows Server 2008 R2 on my server and while installing the service pack 1, I came across an issue. The server downloads the service pack and starts the installation and restarts, once it restarts it goes to a black screen mode where it displays on applying update, after a while the server comes to a halt and freezes. Restarting the server also does not help.

After some research I found the solution by following KB 975484

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